Tasmania’s dairy farmers who supply milk to National Foods have been deceived by the multi national dairy conglomerate it was revealed in evidence provided to a Senate inquiry this week.
In its submission to the Senate’s Food Production Inquiry, Mr Paul Evans, Director of Government and Regulation for National Foods stated:
“If Fonterra moves in response to seasonal pricing then so will we.”
When National Foods were asked whether they would step-up their milk prices following Fonterra increasing their prices by about 1.1 cents a litre earlier this month, the answer from National Foods was no.
National Foods are allowing their supposed special offer to decay until it provides no more than the price that was on the table at the start of the season.
“National Foods claims its special deal for Tasmanian dairy farmers is the best thing since sliced bread, but the complete opposite is true,” Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry and Tasmanian Liberal Senator Richard Colbeck said.
“Not only is National Foods not following its competitor in offering milk price step-ups under its offer to farmers – unlike what it previously stated it would – it is also expecting dairy farmers to apply to the company to access a promised 0.7 cents per litre as part of a ‘special’ assistance package.
Senator Colbeck posed a series of questions to National Foods representatives at the Senate inquiry with a focus on the current deal being offered to dairy farmers.
“It has become clear that National Foods’ offer to farmers, which it has trumpeted through expensive newspaper advertising, is no different to the offer they received at the beginning of the season. In fact the offer is potentially less because farmers now have to apply for a part of the payment they would have received automatically under the original offer.
“The National Foods milk price deal gives the strong impression of being little more than a intricately piece of corporate trickery being launched on farmers when they and their families are at their most vulnerable, facing tremendously difficult financial circumstances.
“National Foods continues to fail to understand that its standing in the Tasmanian community – and within the supermarket aisles – is dependent on treating Tasmanian dairy farmers and their families with respect and not attempting to deceive them.”
Senator Richard Colbeck – Shadow Parliamentary Secretary for Agriculture, Fisheries and Forestry
